India gives $5-billion aid to Africa

India loosened its pursestring to woo Africa on Tuesday with Prime Minister Manmohan Singh announcing a multi-billion dollar in aid while inaugurating the second India-Africa Forum Summit in the capital of Ethiopia.

Amid thunderous applause from the leaders and representatives of 15 African countries at the African Union headquarters in Addis Ababa, Singh announced a line of credit worth $5 billion "to help achieve the development goals of Africa". "There is a new economic growth story emerging from Africa. Africa possesses all the prerequisites to become a major growth pole of the worldâ€¦ India will work with Africa to realise its vast potentialâ€¦ It is in this spirit that I wish to outline some initiatives for the consideration of our African partners," Singh said on the eve of Africa Day.

The $5.4 billion aid offered at the first Summit in Delhi in 2008 focused on regional integration through infrastructure development.

Singh said, "I believe we have reason to be satisfied with what we have achieved since 2008. But our people expect much more and we have to work hard to deliver on these expectations.

What India is offering AfricaHe also offered an additional $700 million to establish new institutions and training programmes in consultation with the African Union and its institutions. There was also support for the development of a new Ethiopia-Djibouti Railway line to the tune of $300 million.

Unlike China capacity building has been India's focus in Africa over decades. It may be recalled that half of the Cabinet in an erstwhile Ethiopian government had studied or were trained in India. The area of capacity building has been New Delhi's strength and Singh once again did not disappoint his African counterparts.

He announced creation of several new institutions at the Pan African level across various sectors - food, textile, weather forecasting, life and earth sciences and agriculture and rural development.

African students are a common sight in Indian cities be it Bangalore, Pune, Mumbai, Delhi or Kolkata. To encourage them further government announced that an India-Africa virtual university will be set up to meet the demands among Africans for higher studies in Indian institutions.

Towards this end 10,000 new scholarships will be offered under the proposed university.

The PM also announced an increase by 900 training slots for the Africans under the Indian Technical and Economic Cooperation (ITEC). Therefore a total of 2500 training positions under ITEC will be offered for the next three years to the Africans and total scholarships offered during the same period will amount to 22,000.

At the bilateral level, it was also proposed to establish institutes for English language training, information technology, entrepreneurship development and vocational training across African countries. And as part of new initiatives in the social and economic sectors India will also establish rural technology parks, food testing laboratories, food processing business incubation centres and centres on geo- informatics applications and rural development.

In order to bring together business leaders from both sides and deepen trade ties, an India- Africa business council will be set up.

A strong votary of peace building in Africa for decades that would lead to prosperity, India made yet another key announcement.

Singh said, "I am happy to announce that India will contribute $2 million for the African Union Mission in Somalia." Stability in the Horn of Africa, as Somalia is known, is also key in addressing the menace of piracy, of which India has been a victim.

Air connectivity has been a bottleneck between Indian cities and African nations.

This has not helped in increasing peopleto- people contacts. Acknowledging this, PM said, "One of the biggest gaps in our interaction is that of insufficient air connectivityâ€¦ To begin with, India would be happy to increase the access of African airlines to Indian cities in a significant manner over the next three years."

India on its part sought Africa's support for its bid for a permanent seat in the UN Security Council.

"The current international economic and political situation is far from favourable, particularly for developing countries... The world faces new challenges in assuring food and energy security. Global institutions of governance are outmoded and under stress," Singh said.

African nations had overwhelmingly voted for India in the election for non permanent seat at the UN. The continent also hopes to get two slots in the expanded Security Council.